The Nissan – Renault group after the worst results in a decade.
Nissan has collapsed 10% after its bad results: it gained 327.5 million euros between April and December (the first nine months of its fiscal year), which is 86.7% less than a year ago and the worst of the last decade, due to a slowdown in sales.
At the moment, Renault falls more than 3% after recording its first loss of profits in 10 years (annual loss of 141 million euros) and, in addition, the manufacturer has set a lower operating margin for 2020, a decisive year after the scandal that surrounded the former boss Carlos Ghosn.
The European automotive sector is moving flat at the moment of opening. Investors will be aware of how the sector evolves.
To these losses in the results there is another risk factor for the automotive industry: the coronavirus.
As reported by Faconauto, the Spanish employer’s concessionaires, “the outbreak of coronavirus in China could prolong the fall in vehicle sales and derail the production of the country and the global market.”
With the coronavirus outbreak, many plants have been forced to suspend their production to avoid possible infections. According to the rating agency S&P Global Ratings, it will make the exit from the recession of the sector even more difficult.
Faconauto recalls that German firms Daimler and Volkswagen have said they hope to resume production of vehicles in China. Volkswagen is more exposed to possible damage. It has 24 plants that manufacture cars or parts in China. It corresponds to 40% of its total production.
In addition, the employer emphasizes that Nissan has already announced that it would stop its facilities in its domestic market because of the virus.